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| News » Divorce Law » Government urged to lower interest on legal aid loans |
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13/02/2009
Government urged to lower interest on legal aid loans |
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It has been reported that many divorcing couples are being charged eight per cent interest on legal aid loans.
Henry Bellingham, shadow justice minister, says that ministers should lower the statutory charge interest rate immediately, particularly as the Bank of England base rate currently stands at an all-time low of one per cent.
The statutory charge applies to those who are in receipt of legal aid during a contested divorce hearing.
"It is totally unacceptable that at a time when interest rates have fallen to an historic low the government continues to charge a staggering eight per cent interest rate on the statutory charges attached to properties," the Telegraph has reported him as saying.
In 2005 the rate was increased from five per cent to the current eight per cent - when official interest rates were at 4.75 per cent - but the government has neglected to bring it down over the past few months, despite the monetary policy committee slashing the base rate. |
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